In the past few years there has been a rise of inter-ethnic violence in China. While ethno-cultural repression and ineffective state policies are correctly attributed as key culprits behind this reality, this article suggests that socio-economic factors play a fundamental contributory role as well. Using the Xinjiang case, the article maps ethnic tensions and violence as a manifestation and expression of a growing and heighten ethno-cultural consciousness stemming from ethnic minorities’ low socio-economic status due, in part, to internal Han migration, and a labour market process – involving agency and structure – that has shaped a split and segmented labour market.